Pinnacle Entertainment Rides First Quarter Results
Pinnacle Entertainment (PNK: 11.01 0.00%) shot up in value this morning as news broke of its stellar first-quarter results. The casino gambling operator reported earnings per share at two cents, where many gaming analysts expected a loss of three cents per share.
Market investors quickly reacted, sending Pinnacle stock up eight percent in early trading.
Local casino operations in Louisiana and Missouri are credited with the overachieving by Pinnacle. Joseph Gref of JPMorgan noted that Lumiere Place in Missouri has capitalized on the state’s repeal of its loss ceiling for gamblers.
Pinnacle reported revenue for the quarter of $269 million, passing industry estimates of $265.3 million with ease.
The gaming company’s reliance on regional casinos has proved a blessing, as local operators continue to maintain steady earnings while destination resorts flounder.
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